Preparers of fi nancial information encode their message in an
accounting language that needs to be decoded by users to enable
them to understand and use the information properly. In order
to convey meaning successfully, the sender and the receiver of a
message need to use the same method to encode and decode the
message, that is, there needs to be some commonality of language
between the two parties. The research problem focuses on the issue
of whether there is room to increase the commonality between
the preparer and the user as a prerequisite for conveying meaning
in corporate annual reports (CARS). The research problem was
investigated mainly through questionnaires aimed at preparers and
users of accounting information. It was found that the statutory
and contextual sections of CARS are interdependent and could be
utilised more in order to enhance the commonality of the accounting
language for conveying meaning.
Citation:Cronjé, C.J. & Gouws, D.G. 2011. Commonality between the preparer and the user. Southern African Business Review 15(2) 43-58
Items in UNISA Institutional Repository are protected by copyright, with all rights reserved, unless otherwise indicated. Items may only be viewed and downloaded for private research and study purposes. Please acknowledge publications according to acceptable standards and norms.
